Cafeteria Fund Guidance

Provides Local Educational Authorities (LEA) with information and instructions pertaining to federal and State statutes and regulations that govern school cafeteria funds.

Federal and State Regulations

The Title 7, Code of Federal Regulations (7 CFR) governs nonprofit school food service account (cafeteria fund). School food authorities participating in the National School Lunch (NSLP), School Breakfast (SBP), and Special Milk (SMP) programs must establish a cafeteria fund [7 CFR 210.9(b)(1)]. All federal, State, and local revenues, payments, and program reimbursement must be deposited into the cafeteria fund and are to be used solely for the operation and improvement of this service [7 CFR210.14 [http://www.ecfr.gov/cgi-bin/text-idx?node=pt7.4.220&rgn=div5#se7.4.220_114]]. In addition, school nutrition program sponsors must comply with State and federal limitations on the use of cafeteria funds [7 CFR 210.9(b)(1)].

Public school districts and county offices of education that participate only in the State Meal Program or that do not participate in any reimbursable meal program still must observe all State laws (e.g., California Education Code and California Public Contract Code) relating to the operation of a food service program and the use of school food service program revenues. Food services include the preparation and service of regular and incidental meals, lunches, milk, and/or snacks in connection with school (or after school) activities, and food delivery.

Expenditures from the cafeteria fund/account are governed by both federal and State laws, specifically:

SNP Presentations

Cafeteria Fund 2013–14 Webinar Series

This Cafeteria Fund Webinar series started in December 2013 and continued through February 2014 and provided training and resources to local educational agency (LEA) staff to help them properly manage and expend cafeteria funds as required by federal and state law, as well as regulatory and policy guidance.

Cafeteria Funds Webinar Part 4 – Paid Lunch Equity and Revenue from Non-program Foods
[https://www.youtube.com/watch?v=WlpCmrk6ouI] (Video; 29:37)
This video provides a review of paid lunch equity (PLE) and nonprogram foods. The viewer will learn policy guidelines governing these two requirements from the Healthy, Hunger Free Kids Act of 2010 and go through step-by-step instructions on how to use both the USDA PLE and Nonprogram Food Tool.

Cafeteria Funds Webinar Part 5 – Allowable Renovation Costs[https://www.youtube.com/watch?v=U7wiRnkowow] (Video; 27:57)
This video provides an overview of the federal and state regulations, laws and policy guidelines to explain and define allowable renovation costs. The viewer is given a series of questions and answers to many different renovation scenarios and learns the two criteria that distinguish between construction and non-construction type renovations.

Cafeteria Funds Webinar Part 6 – Time Accounting Requirements[https://www.youtube.com/watch?v=sifxOX3UXv4] (Video; 25:55)
This video provides a review of the time accounting requirements. The viewer will first be given a series of questions to test their knowledge, then will learn the policy guidelines governing the time accounting requirements. The video will then present the questions again with the answers, instructing the viewer on the different types of time accounting in detail.

Frequently Asked Questions

Questions and answers to aid LEAs with understanding the complex requirements surrounding Cafeteria Funds. If you are unable to find the answer to your question below, please contact the Resource Management Unit at snpcafefundquestions@cde.ca.gov for additional guidance.

U.S. Department of Agriculture Capital Expenditure Approved List

Per USDA Policy Memorandum SP 31-2014 [http://www.fns.usda.gov/state-agency-prior-approval-process-school-food-authority-equipment-purchases], any equipment
appearing on the Capital Expenditure Approved List will possess state agency prior approval, and, therefore, the SFA may purchase those equipment items following proper federal, state, or local procurement procedures, as applicable, without submitting a request to the state agency for approval. The effective date of the USDA Capital Expenditure Approved List is July 21, 2014. This list is available as a Web document at USDA Capital Expenditure Approved List (XLS). Note: Per USDA Policy Memorandum SP 39-2016, SFSP 13-2016, CACFP 11-2016, only school districts operating the Child and Adult Care Food Program (CACFP) and/or Summer Food Service Program (SFSP) in conjunction with the School Nutrition Program are not required to receive prior approval from the CDE before purchasing equipment appearing on this list; however, school districts on either program must account for the expense in the program budget to which the cost pertains.

Contact Information

If you have questions regarding cafeteria fund policy or regulations, please contact the School Nutrition Programs Unit at 800-952-5609 or you can submit your questions to SNPCafeFundQuestions@cde.ca.gov.

If you have questions about the CSAM or how to account for particular charges to the cafeteria fund, please contact the School Fiscal Services Division, Financial Accountability and Information Services Unit by phone at 916-322-1770 or by e-mail at sacsinfo@cde.ca.gov.

Limitations on the Transfer of Funds[http://www.cde.ca.gov/ls/nu/sn/mbnsdsnp072008.asp] (July 2008) Management Bulletin NSD-SNP-07-2008. Includes comprehensive federal and state cafeteria fund regulations; also includes guidance on loans and penalties.

School Cafeteria Funds/Account Regulations; Clarification of AB 1754[http://www.cde.ca.gov/ls/nu/sn/caffundguide.asp] (November 2004) Joint Nutrition Services Division and School Fiscal Services Division (SFSD) Letter to County/District Superintendents, Business Officials, and School Food Service Directors. Provides districts with information and instructions pertaining to federal and State statutes and regulations that govern school cafeteria accounts, and clarifies section 39(a) of Assembly Bill (AB) 1754.

Cafeteria Fund Loan Guidance from the U.S. Department of Agriculture (DOC) [http://www.cde.ca.gov/ls/nu/sn/documents/caffundguideusda.doc] (posted to CDE Web
June 3, 2004, as a link to above letter, and later added as link to MB NSD SNP-07-2008). Provides specific instructions as to when cafeteria fund loans can be used and how they must be repaid (with interest), and explains how the agreement for a loan must precede an actual fund transfer and be accompanied by documentation, such as a board policy.

Indirect Cost Rates (ICR)[http://www.cde.ca.gov/fg/ac/ic/index.asp]. The SFSD provides extensive annual guidance for LEAs, including the list of indirect cost rates for each LEA, explanation of how indirect cost rates are calculated and applied, and the annual state-wide maximum indirect cost rate for the Child Nutrition Programs.

Earned Income Tax Credit Information Act (added 27-Apr-2018)
This Web page provides information regarding the Earned Income Tax Credit Information Act and what steps local educational agencies are required to take to be compliant.

School Nutrition Programs Application Process (added 02-Apr-2018)
The National School Lunch Program (NSLP) and School Breakfast Program (SBP) are federally funded programs available to all qualifying agencies which serve meals to students of high school grade or below.